Mingteng's High-Stakes Bet on Advanced Manufacturing with New Mega-Facility

WUXI, China – January 14, 2026 – In a bold move signaling deep confidence in the future of automotive manufacturing, Mingteng International Corporation Inc. (Nasdaq: MTEN) has completed the relocation to a vast, newly-built production facility. The company announced that the strategic upgrade, finalized in December 2025, is designed to increase its automotive mold production capacity by a staggering 50%, a direct response to what it identifies as soaring market demand, particularly from the electric vehicle (EV) sector.

This expansion is more than a simple change of address; it represents a significant capital investment and a strategic pivot for a company navigating a volatile financial landscape. While Mingteng has shown year-over-year revenue growth, it has also faced considerable net losses and a precipitous decline in its stock value over the past year. The new facility, equipped with state-of-the-art technology, is a high-stakes wager that a leap in production capability and technological prowess can steer the company toward sustained profitability and a leadership position in a highly competitive market.

A Leap in Scale and Ambition

The sheer scale of the new production base underscores the company's ambition. With double the floor area of its former workshop, the facility is engineered not just for current needs but for future growth. The design incorporates flexible layouts, reserving space for additional production lines and an expanded product portfolio. This addresses a critical bottleneck that, according to the company, previously stifled its ability to capitalize on market expansion opportunities.

By consolidating operations into a single, modernized site, Mingteng aims to achieve significant gains in operational efficiency. An integrated management system for safety and operations is expected to streamline workflows, reduce lead times, and improve overall output. The move is a calculated response to a global automotive mold market projected to grow from USD 45.3 billion in 2024 to nearly USD 80 billion by 2033, a surge heavily influenced by the transition to electric mobility.

Mr. Yingkai Xu, Chairman and Chief Executive Officer of Mingteng International, framed the project as a cornerstone of the company's long-term vision. “This relocation of production base represents a key milestone in our mid- to long-term development strategy,” he stated at a briefing. “The new facility not only resolves previous capacity constraints but also injects sustained momentum into our growth through intelligent manufacturing upgrades and an enhanced brand presence.”

Powering the Electric Vehicle Revolution

The true significance of the upgrade lies in the advanced technology now at Mingteng's disposal. The press release details a comprehensive overhaul of its manufacturing arsenal, including the deployment of multiple high-precision Computer Numerical Control (CNC) machining centers, advanced electrical discharge machining (EDM) and wire-cutting equipment, a 50-ton overhead crane, and a large-tonnage clamping system for die-casting molds.

This new equipment is not merely an incremental improvement; it represents a qualitative leap, positioning the company to compete at the highest level of mold manufacturing. The ability to produce large and complex die-casting molds is particularly crucial. The automotive industry, led by EV manufacturers, is increasingly adopting “gigacasting”—the process of casting large, single-piece vehicle sub-structures to reduce weight, simplify assembly, and improve structural integrity. These massive components, such as battery pack enclosures and underbody frames, require exceptionally large and precise molds that only a handful of suppliers can produce.

The 50-ton crane is essential for manipulating these multi-ton mold blocks, while the large-tonnage clamping systems are critical for ensuring the integrity of the casting process. High-precision CNC and advanced EDM technologies enable the creation of the intricate geometries and tight tolerances demanded by modern automotive components, from complex turbocharger systems to sophisticated EV motor drive systems. With China expected to see EV sales surpass those of traditional combustion engine vehicles in 2025, Mingteng is positioning itself to be a primary supplier for this domestic manufacturing boom.

Navigating Financial Headwinds with a Bold Vision

The strategic expansion occurs against a challenging financial backdrop. While Mingteng reported a 23% year-over-year revenue increase to $10.12 million for fiscal year 2024, it also posted a net loss of $5.68 million. Its stock (MTEN) has experienced extreme volatility, with its price falling dramatically over the last twelve months, wiping out significant market capitalization. This contrast between operational ambition and market valuation makes the investment in the new facility a pivotal moment for the company.

Analysts note that while the stock trades at a low Price/Book multiple, suggesting potential undervaluation, the persistent net losses raise questions about its path to profitability. The company's balance sheet does offer some reassurance, with reports indicating it holds more cash than debt and maintains a healthy current ratio. This financial footing was likely crucial in enabling the massive capital expenditure for the new factory. The success of this investment now hinges on Mingteng's ability to translate its newfound capacity and technological edge into firm orders and, ultimately, positive cash flow. The company must prove to investors that it can fill its expanded production lines and command margins that justify the upgrade.

More Than a Factory: Building a Brand for the Future

Beyond the machinery and production metrics, Mingteng is leveraging the new facility to execute a comprehensive rebranding. The contemporary architecture, smart manufacturing systems, and improved working environment are explicitly designed to elevate the company's corporate image. This is a strategic necessity in a global supply chain where factory facilities and technological capabilities are often a “threshold requirement” for winning contracts with major domestic and international automotive brands.

An enhanced corporate image serves a dual purpose. Firstly, it strengthens Mingteng's appeal to top-tier clients who conduct rigorous supplier audits. Secondly, it positions the company as a more attractive employer for the highly skilled technical and management talent essential for operating advanced manufacturing systems and driving innovation. In China's competitive industrial landscape, attracting and retaining talent is a key differentiator.

As Mr. Xu concluded in his remarks, the goal is to leverage this transformation to accelerate breakthroughs in core technologies and deliver greater value. “We will leverage this transformation to further optimize the lean production management, accelerate breakthroughs in core technologies, deliver greater value to our customers, and generate sustainable returns for our shareholders. Looking ahead, we remain committed to an innovation-driven strategy, a quality-first philosophy, and the full utilization of our advanced manufacturing capabilities. We are confident that Mingteng International is entering a new phase of high-quality development as we advance toward our long-term strategic objectives.”